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tv   Countdown to the Closing Bell  FOX Business  January 22, 2013 3:00pm-4:00pm EST

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cheryl: research in motion on a tear. the blackberry maker is soaring monthly income investors taking heart to the word strategic alternative. i am cheryl casone, this is the last hour of trading and the "countdown to the closing bell" begins right now. liz claman is on assignment this week in switzerland gearing up for a ton of great interviews with leaders and business from around the globe. including one of the biggest names in technology and a big party apple ecosystem. talk about qualcomm. talking strategy with the ceo of qualcomm, paul jacobs. and ken fisher, ceo of merck, a pioneer in new targeted therapy talking to liz, plus you know him, chairman and ceo of
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coca-cola. just the tip of the iceberg in terms of business leaders coming up. tune i into the fox business network all week long for the biggest interviews from davos. let's get to research in motion. the stock is jumping once again, cracking the $17 mark. heavy volume today. how much of this is due to a potential licensing deal? talking about selling the entire company, maybe it is just excitement over blackberry 10 due out at the end of the month. shibani joshi telling us about that. joining us, senior research analyst with an underperform rating and $7 price target on the stock. let's talk about where the stock is right now. many had discounted, ready to be torn apart, now there is renewed interest in this company. it's blackberry 10 going to deliver, do you think?
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>> at the end of the day they're facing a significant uphill challenge. they can turn into real numbers, and there is a lo a lot of anticipation around january 30 event. that is really what is still driving the stock. cheryl: let's talk about the service revenue they collect from carriers. if there is a change in the company overall with the blackberry 10, won't some of those go away? couldn't that be a negative? >> you hit the nail on the head, be careful what you wish for. the company reall company reallm the service revenue stream which generates gross margins and accounting for the bulk of the profitability. the more successful blackberry 10 is, most subscribers no longer pay a service revenue,
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and so again damned if you do, damned if you don't. cheryl: that'll be one thing to watch, but any more hints from leadership? i know you say it is looking a little bit too hard here, but if there was some type of at least split off in the company, maybe there was a partnership in play, wouldn't that be a positive for this stock? will you be listening for that language? >> no question about it. we will be looking for an update, submit company has voiced over the past year. they will probably continue to do that, including the whole business, perhaps a licensing deal. all of that is very much on the table. there is evidence there could be
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interest, just not clear to us right now who that would be. cheryl: at the same time i want to ask you about the competition. we will be hearing from apple tomorrow, overall apple, samsung, can blackberry, can rim compete in this environment? is it all that it is hyped up to be? >> i don't think it can, but the proof will be in the pudding. i think blackberry 10 will represent a significant improvement for the blackberry devices. i think it will mimic in many respects the attributes of the ios and its respective manufactures whether it is apple or samsung. the real question is does it have that extra sizzle to entice customers to come back to the blackberry family? cheryl: absolutely.
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will they go back to blackberry or stick with athletes. senior research analyst, thank you. >> thank you for having me. cheryl: the path of least resistance is higher. we're sitting at these five-year highs for the major markets, and the dollar is higher, the nasdaq, s&p, the russell all trading to the upside. january seems to be happening. we finally got out of the $92 area. let's go to the floor show. the cme group and of course the nymex standing by at the new york stock exchange in the thick of earnings all about technology, how are you feeling?
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>> today is one of those days a market of stocks rather than a stock market. we are starting to hit resistance from a pure technical perspective, those who follow the indicators telling us the s&p has hit a number giving us an indication that may have run into that resistance. it may not be evident, but that is where the algorithms are going to start positioning their trading. on the flipside those who follow those are suggesting on the technicals we may see a bottoming so that' that may be n option for the money that is invested in the broader market may become more selective and function and flow into some of the technology sectors. tracy: let me go over to chris, so many things to watch right now, we're kind of keeping one
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eye on the fed throughout the year. money is so cheap, what does that tell us about when we will hit the key inflation level? >> the fed has an open balance sheet right now. we're almost going to be in a currency war with europe, china's new president, the yen, japan in regards to increase exports and the only way to really do that is to weaken the dollar amount and really the biggest news besides being somewhat vanilla is i will not short anything until the level is breached. adding to the story right now with a seemingly commodities being the story with oil being close to $96.50. we'll see how that affects the economy and possibly shortening
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the s&p. cheryl: let's go to the nymex. let's go back if we can do this crude story. natural gas still sitting at incredibly low numbers but really rising, what is going on in your opinion here? >> people are not afraid of a big move in crude. options are dirt cheap, usually protection against violence moves are a volatility in the market and giving them away. you can make a stronger argument natural gas is overpriced, but with crude, i don't know. always waiting for the next big news story. it has been a slow grind, nobody seems to care. tracy: gentlemen, thanks to all of you, appreciate it. investigators are gearing up for
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google's earnings. after the bell, we will have the numbers for you as soon as they cross. the biggest question in anybody's mind is can google keep up with facebook when it comes to mobile search revenue. it is a tough business. joining me now to talk about his expectations for google and what we should be looking for. seems to be about revenue and advertising. can they make the mobile platform work? >> the mobile platform is working fairly well right now. certain markets accounting for over half paid search growth. google is between my expectations in terms of overall numbers. are there challenges? absolutely. advertisers will pay less. cheryl: the click through revenue, see where we're at in the mobile space as well. 740 right now, we're looking at
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the estimates, glad our producers are bringing in this stock pick. will they get a surprise because it are not evaluating the quarter specifically when it comes to the sale of a just completed? >> that causes some muddiness. some investors have possibly pulled out. cheryl: do you think analysts have been late to the party? chief investment officer came out friday and said you're not evaluating my company properly. this could be a billion dollars shortfall in revenue. are they ready for this? >> analyst, late? in fairness understanding motorola even before the disposition was not the easiest thing to do because google doesn't give a lot of forward guidance to their plans or financials. in defense of the analysts i
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would say they might be a little bit late but there are other issues. cheryl: yet they still had 57% of search in this country. the name itself, how concerned are you about the facebook of the world? they want to start doing a search if you will, they are gearing up to compete with google, if you will. do they stand a chance? >> over the next couple of years they are not a major factor, they're just beginning to get into search. it comes down to what the consumer uses a social network for than a search engine. they may be more willing to get in the midst of your searches providing the answer and google gets to collect on that. they may be less willing to get involved in the social work. cheryl: i want to go back to mobile platform, one of the key problems many of these companies have had, google goes along with it is on the device is the amount of space for those ads to come in.
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the notice has come come up in the past, but you ar you're loor that today. >> you never know what they're going to say about mobile versus desktop search. relative to other platforms, search is favored on the mobile device. i think that is helping them. cheryl: so much has changed in the past month. thank you so much. we will see what the numbers tell us. today is the day for earnings. not only google coming out, ibm, advanced microdevices. do not miss our coverage. the big report coming up after the bell at 4:00 p.m. eastern time on fox business. the closing bell will be ringing 47 minutes from now. he is the guy in charge of enforcing the law at the sec. his tenure ends friday.
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find out what he has to say about his critics and supporters as well. plus, full steam ahead at facebook, alice are buying into the mobile monetization hype. that and a lot more when "count down" comes back. ♪
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tracy: our power mover of the hour. shares are up. fourth-quarter results this morning, they said metal volumes than expected thanks to higher copper as well as gold production in north and south america. they agreed to by two energy companies last month, but the ceo telling shareholders there are no plans for additional energy or mining acquisitions. says you make money on it if you let charles payne take a look at this stock.
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positive comments about sales trends coming in on that one. nicole petallides on the floor of the new york stock exchange. here we are. nicole: facebook has been a stellar performer over the last three months making their announcement with their search mechanisms now we're talking about facebook mobile. based on all the looks and the finest, 3.3%, so research has been checking into the sales they have been seen. reporting the facebook usage has risen 15% month over month. these are some of the findings from some of the professionals and so far they're feeling pretty optimistic about what they have been seeing the facebook. we saw this stock breakdown below 20 and here it is right
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now. tracy: is amazing what we will take as positive news. the man behind business regulations are stepping down. but before he ends his tenure, fox business peter barnes had a chance to speak exclusively with him. >> he was brought in at the agency missed the big ponzi scheme perpetrated by bernie madoff. brought in to beef up the system, beef up the staff to make sure that there would be no more in the future that would take billions and billions. so i asked him after four years under his leadership is the agency better prepared to catch the bad guys? >> can the sec, will the sec catch the next bernie madoff?
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>> the resounding answer is yes. increasing expertise, the use of data, specialized focus and a whole bunch of other new initiatives making us better equipped to be a market watchdog and enforcement authority. >> but he did acknowledge there is a risk that they always won't catch all the bad guys early enough. cheryl. cheryl: great interview. peter, thank you very much. all right, we'll b we will be tg about dell coming up. who else is coming up on the show? a lot of chatter around this company and the future, will it go private, a lot of questions, charlie will have more answers coming up. we now have 40 minutes to go. twins. i didn't see them coming.
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cheryl: disney head robert iger received an increase in 2012, but did he deserve it? dennis kneale is here with the details. dennis: what makes robert iger so good? i have known him since he ran abc prime time in the 1980s. the low-key style has helped him score some great deals. orchestrating the pixar deal, disney also bought marvel which gave us the highest grossing film of the year, the avengers. and now has snagged "star wars" franchise. also open up china for disney. shanghai opening a couple of years but is he worth $40 million pay package? let's break down the numbers.
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over $40 million the past fiscal year, but disney stock price up 76% at the same time. earnings per share raising 24%, and shareholders have reaped the benefits. the total shareholder return came in 76% this fiscal year more than twice the 3% return of the s&p 500, over three years disney total returns are just shy of 100%, more than double the s&p. here's what disney stock surged looks like over fiscal 2012. and here's how that compares to the s&p 500 stock index. up less than half as much as disney at that time. if you plot their rise, they're up less impressively, but that still needs the pants off of the s&p by 12%. last year was not a fluke.
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look at all seven year reign. shareholder returns of almost 140% during his tenure at the top and 36% return for the s&p. tracy: coming-out cheryl: coming out with pretty darned good shows. dennis kneale, thank you very much. speaking of getting into the real estate market for specialist interest rates at historic lows, 30-year fixed mortgage 3.57% in the month of january, that is the interest. so ask yourself is a it a time o buy? should you be financing something? joining me now on a fox business exclusive. you are known to be a real sharp with manhattan real estate but do you think interest rates will stay? >> they will stay for the short
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term. cheryl: a week, three months? >> the rest of the year, i think. cheryl: what does that mean for those looking to move up, if you will, move up from where they are now, is it that type of market? >> is not such a positive market people are looking to move up. you have to have great credit, you have to have mobility and so many things to be able to trade up, but it is not such a trade up market yet. follow these numbers, new home e stars and this and that. new home starts for a lot of multi-family homes. new homes in effect, right? a lot of times investors in all kinds of other groups, not end users. tracy: the cash buyer says i will buy five condos and sit on them.
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>> it is not an end-user. versus investors and everyone else. cheryl: younger generation sitting and looking from one that will not last forever, what happened in three years and we're back to five, 6%? >> hopefully everything will stabilize and they will be confident, even interest rates a little higher, confident you will have a job, i think it is okay, they will be happy. not just unemployment, underemployment. everybody says my paycheck just got smaller january 1. additional taxes, all kinds of reasons. those people will not buy real estate.
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that is what happened january 1. let's talk about overall, they talked to me about builder confidence. still have not broken the 50 level. a couple of regions have hit it, the northeast has not, for example. so where is the disconnect? >> you have a demand for multiple family housing. town home garden apartments, that kind of thing demand is there. out somewhere not so commutable, it is not there. cheryl: because you're a real estate agent to the stars coming of high-end luxury clients with multimillion dollar property, is that market strong, will it stay strong, do you think? >> the market is strong due to the overall lack of supply and
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we have all kinds of people buying in new york. foreigners, investors, users, so much, so many buyers from so many pools, it works. cheryl: thank you very much. if i had an extra $20 million, i would call you. the closing bell is going to ring, exactly 30 minutes to go right now could dell has been the subject of intense chatter of buyouts. the shareholders of little skittish but the bondholders seem confident of what is going to happen. charlie gasparino has new details coming up. look, if you have copd like me,
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>> i'm adam shapiro with your fox business brief. "the wall street journal" reports private equity firms apollo group management and cd me metropolis have emerged as a leading contender to make an opening bid for hostess brands, hoping to buy the iconic brands at a bankruptcy court auction. the u.n. labor agency warns the lingering effects of the global economic crisis will lead to mush unemployment even though -- more unemployment. the agency predicts another five million people will lose their job ands this year bringing the total to more than 200 million, a new record. global unemployment hit 190 million in 2009. and reacting to last month's sandy hook tragedy, groupon has shelfed its gun-related deals and will review the entire category. a spokesperson says all scheduled and current gun-related deals have been put on hiatus while the companies reviews internal standards. that's the latest from the fox business network, giving you the
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power to prosper. we continue our "countdown to the closing bell" with cheryl casone. cheryl: okay, netflix earnings out tomorrow, but investors seemed concerned ahead of the release. back to nicole petallides at the new york stock exchange. >> reporter: so i'm talking a look here at netflix which is below the $100 mark once again. as you noted, we are waiting on the quarterly numbers. there's a couple of things to note here. the first is back in the third quarter they had a slowdown which prompted net public and to back off their earlier pledges of how many subscribers they would add, and most people are starting to think their subscription service going to end the way it started, rising costs that they've been facing, a lot of internet licensing fees that they've been facing. so something to watch, certainly. the stock itself is pulling back, it's down about 1.3%, hovering around close to $98. certainly not $100 and certainly not $133 where it was last february of 2012.
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so everybody eagerly awaiting their numbers and their subscription numbers in particular. back to you. cheryl: nicole, thank you very much. well, investors, shareholders alike maybe antsy about the deal to take dell private, but investors are betting particularly in the bond market right now that a deal is going to get done. charlie gasparino has the latest, watching the bond side of this. >> right. if you saw the stock, the stock has obviously jumped since news first broke that there may be a leveraged buyout led by michael dell, right, the founder, and silver lake partners. okay, what's interesting about this, you see the stock kind of traded up and then down a little bit, but what's really interesting is the bonds. that kind of tells a bigger story. if you look at the bonds before the deal, they were trading about 118, that's the price, okay? they're now trading at about 100. if you look at a chart, and we don't have a chart, but if you look at a yield chart, the yields have gone, i mean, this is -- it looks so dramatic,
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what's going on here. and it looks like investors are betting begtime that this deal does happen. why is that? well, it's a leveraged buyout. you administer bonds to it, you know, you issue more bonds, and that depresses the price of what's currently out there. so that's what's going on right now. i will tell you this, it runs somewhat counter to what i hear. investors are skittish about in this deal. they think michael dell's taking them out at a bargain and it may be posturing to get a few more bucks. but remember, this is a management-led buyout. at some point the price does matter. he's got to walk away if it's not enough. and there's been tons of press about how this deal is kind of crummy at $13. cheryl: eight times earnings right now. >> yeah. cheryl: what do you make of that? normally it's about 15 times. >> i know. it's cheap, man. i tell you, everybody from floyd norris to andrew berry at baron's say that there's a lot
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more wiggle room here, that investors are getting taken out very, very cheap on this deal. and investors, we're hearing that the deal has slowed, the momentum of it has slowed primarily because of this, of convincing shareholders. we were first to report that over the weekend. we do know since that time that dell has gone out and hired evercorp. partners to, basically, converse other potential bids to prove to shareholders that there's no other bids out there, so maybe you should take this thing even at the small premium that it remits or relatively small premium. so there's a lot going on here, but if you look at the price action on the bonds, we're talking about these are the five and seven-eighths of 2019, you know, the prices have definitely gone down dramatically, and that, to me, my friends, means that bond investors who are generally smarter than stock investors, okay? they trade less off the headlines -- now, maybe this is the microsoft. there's news that microsoft may be wanting to throw some money in here, we'll see. i don't think that should matter
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that much. you know, and maybe they're trading off of that. but i'll tell you, bond investors are basically much more long term. so here's the thing. i don't tell you what to do. if you want to put your money on a short-term play on the air, i can just tell you my sources are telling me shareholders are skittish at the price, and that raises a question about whether this gets done. maybe ever gets done. however, bond investors are betting bigtime it does get done. so, you know, you do your homeworker and figure it out for yourself. but clearly, there's two things going on here. cheryl: this could be one of the biggest lbos we've seen -- >> well, in a couple of years. why do we care about this? our viewers trade, and, you know, uncertainty just means that, you know, you've got to watch us, you know, do some reading. i tell you, andrew berry wrote a great column or analysis in baron's this weekend about, you know, how investors are essentially getting the shaft on this thing, $13 a share and why.
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so take all this into account, but bond investors today especially, 80 million bonds traded today. cheryl: very heavy volume. >> $90 million. cheryl: incredible. >> usually it's one million, you know? cheryl: all right. charlie gasparino, thank you very much. we will, of course, continue to follow your reporting on this great story. all right, we now have 19 minutes to go until the bell rings. earnings season is underway as analysts have slashed their estimates for the spp, and with a lot of cash on corporate balance sheets, the highest in years at in this point, do you think companies are right to start spending? he was just talking about microsoft, well, peter anderson says it is time for companies to get creative and for you to get excited. he's got three of his favorite stock picks. you need to hear about them after the break. stay with us. ♪ estimates for the s&p 500, and
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♪ cheryl: here is your fox business market check for you. take a look at the dow transportation average taking off, hitting another record high. it set a new record high, actually, in the last five sessions. this is something to watch, tran. also here's a look at some of the transports hitting new highs today. first in the railroad category, you've got kansas city southern and union pacific; then delta and southwest airlines and finally, fedex hitting a new 52-week high today. coming out, actually, on thursday. all right, let's have a look at the big movers today. sandra smith has more from our data wizard here in the studio. >> reporter: as we show you some of the earnings market today, take note that all three major averages are in the green, you can see we're right near the highs of the session as are some
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of the companies that had reported. johnson & johnson was one of the misses today, down nearly a full percent. stock's seen a lot of volatility in today's session, but this is the stock, by the way, that's up about 11% over the past year, so some biggies appointment on their 2013 -- biggies appointment on their 2013 forecast. another dow stock to watch here, it's up about 1.5% right near its highs of the session, dupont. reported a sharp drop in profits, but it did beat forecasts. you know what happens then, the stock gets a nice boost, so that's got dupont up right now. travelers, their profits were down 51% because of all the lames due to hurricane sandy -- delays due to hurricane sandy. up 2%, and it has been that way really throughout the session. and lastly, we also had verizon. it missed after a record amount of people signed up and bought new phones, but it was on a lot of the subsidies that they were offering, so it cut into
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profits. the stocks in the final minutes of trading up about 1%. and lastly, cheryl, we've got google after the bell tonight, all eyes on google. of course, the big thing there, the sales of motorola and home unit, the company warned on friday that will not be part of earnings, so analysts could be getting the forecasts wrong, so watch for that one after the bell. and ibm, this is going to be a big one to watch for i.t. spending. that, too, after the bell tonight. so, cheryl, the earnings parade continues, and it's really proven to be a big moving factor for the markets this week. cheryl: right. we've had a heck of a month so far. you were going through a lot of the big dow names, again just hitting session highs. but a lot of this is based, as you're saying, on earnings. there's your dow 30, everyone. >> very positive as a result of those we werings. cheryl: sandra,ing thank you very much. we're in the heart of earnings season right now. it's really seasons, but this is the one season with big names like google, ibm reporting after
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the bell today, but what should you look or for in terms of results before you invest in these names? joining me in a fox business exclusive from boston is peter andersen, congress asset senior portfolio management. i want to go back to december when you were on the show, and you were concerned about the dividend taxes spiking, that that was going to effect earnings. you were, frankly, a little negative on those dividend payers. have you changed your mind in the first part of 2013? >> well, i have, and a little bit of that is when they have changed the tax rate for dividends, they haven't gone to the apocalyptic level, if you want to call it that, so it's a much more reasonable tax rate. so i still think companies will be raising their dividends this year. it's a great thing to get additional income, and even though you will be paying a little bit more in a tax rate, i still think it's very attractive for investors out there. cheryl: peter, you're talking about those dividend payers, you're saying to look at the dividend news as we go through each earnings report, as we go through a few today in
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particular. but also you're talking about other things we need to watch, in particular, i think, looking for share buybacks. do you think we're going to get some this earnings season? >> i absolutely do, and let me just outline the thesis behind that. first off, i'm expecting this year for earnings results to be tempered in the sense that they're not going to blow the doors off the way they have been in the past. so if you're a cfo of a company and you know your earnings are not going to be spectacular this year but you do want to boost your stock price, you have a couple of tools in the tool kit, so to speak. one of them is a stock buyback. very simple to transact and implement, and it does have evidence that it can boost the eps of a company just by buying back those shares and taking them out of circulation. so i think it's not the top idea, but it's a good way to kind of bolster your stock price if you can't get the top level earnings results. cheryl: i think, you know, we were looking on the screen and looking at some of the things that you're watching in particular this earnings season and spinning off into new
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technologies, but i get back to the companies that have cash on hand. they have been sitting on cash. money is cheap for at least three years now, what, $2 trillion sitting on company books? you think this is the year they finally put it to work, we're going to see m&a? >> i think they can't hold their breath any longer. you will have to do something, and that will be as a result of shareholder pressure. nobody likes to see cash just laying dormant on the books of a company. especially when we all have opinions, strong opinions about what should be done as shareholders with that cash. so i think this year will be the year combined with the tempered earnings that will increase the pressure on cfos and company officials to do something with that cash. cheryl: you do have picks, and i would like to go through them and just kind of give our viewers a sense of who you like. news corp., anadarko petroleum. interesting mix you've got going on here. >> yes, i do, and it's because
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of all the things we mentioned. i'm looking for idiosyncratic risk. not just companies that trade with the market. so, for instance, life technologies, it's a dna sequencer, but recently it just announced that it hired an investment adviser to help it whether or not it should sell itself to another company, buy back stock, et. i love stories like that where there's a little bit of an off the beaten path kind of thesis behind the stock. same goes with news corp.. that's announced an initial stock buyback, and it's also spinning off its news division. so things like that are really interesting in that they don't just follow the main flow of the market, so to speak, and that what your investors should be looking at, things that are not standard right now, was that's where you're going to make the dough. and lastly, ana darrow, it's undervalued when you look at it. when you look at its assets, it's trading at a discount to its net assets.
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and there is a lawsuit going on out there with anadarko that should be resolved this quarter. it's a little bit technical to go into detail here, but that also is appealing appealing andf the reasons why it's undervalued right now. cheryl: texas-based company, if you will. peter andersen, great picks, obviously. we'll see you very soon. thank you. >> you're welcome. cheryl e cheryl well, can you name the only insurer on the dow? if not, you're going to wish that you could, it's one of the dow's biggest gainers today. find out if you got the right answer after this. take your bets now as we go to break. ♪ ♪
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♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all onhinkorswim from td ameritrade. ♪ cheryl: i know you racked your
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brain during the commercial break. okay, it's travelers, trv. if you guessed this went, you got it. the insurance company posted fourth quarter results despite increased claims from hurricane sandy, travelers' profit barely topped $3 million, but the stock is up more than 2% right now, but that is down more than 50% from last year, the stock overall. anyway, profits did beat analysts' expectations. the stock is jumping on the news, as you can see. 77.85. travelers is one of the dow 30 leaders today right now, there it is. the dow sitting at session highs, and that is my cue to send it to david asman and lauren simonetti. david: good to see you again, lawrp. we've got google, ibm, a whole host of companies that are going to be reporting, we're going to bring them to you as soon as we get it. let's go to nicole petallides at the new york stock exchange. let's talk about one company that's not reporting today but that is doing

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